SIRMIUM CAPITAL
1099 Tax Alert — NPs & PAs
The Biggest Tax Mistake
NPs and PAs Make
With Locum Income
Most people doing 1099 work are leaving $2,000–$5,000 in penalties on the table every single year.
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The Problem
The IRS Expects Quarterly Payments.
Nobody Tells You This.
- W-2 employers withhold taxes automatically. 1099 work does not.
- If you owe more than $1,000 at tax time, the IRS charges an underpayment penalty
- The penalty is automatic — no audit, no notice, just a larger bill in April
- Most NPs and PAs doing locum work don't discover this until year two
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The Opportunity
$66K
What you can shelter per year with a Solo 401(k) or SEP-IRA
if you're doing any 1099 locum work.
Your W-2 employer's HR department will never tell you this exists — because you'd be contributing to your own plan, not theirs.
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The Two Options
Solo 401(k) vs. SEP-IRA —
Which One Is Right?
Solo 401(k)
Up to $66,000/year. Employee + employer contributions. Best for higher locum income. Slightly more paperwork to set up.
SEP-IRA
Up to 25% of net income ($66K max). One contribution type. Easiest to set up — open online in 15 minutes at Fidelity or Schwab.
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SIRMIUM CAPITAL
The PSLF Warning
Refinancing Your Federal Loans Removes
PSLF Eligibility. Permanently.
- If you work at a nonprofit hospital — even part time — you may qualify for PSLF
- PSLF forgives your remaining federal loan balance after 10 years of payments
- The moment you refinance to a private loan, PSLF eligibility disappears forever
- Check: studentaid.gov → PSLF Help Tool → before doing anything
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SIRMIUM CAPITAL
Free Tools — No Email Required
Run the Loan vs. Invest
Math on Your Situation
The calculator shows exactly when investing beats payoff — based on your actual loan rate, tax bracket, and 1099 income.
sirmiumcapital.com/calculators
Loan vs. Invest tab · 30 seconds · 15-min call also available
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